Individual Pay and Outside Options: Evidence from the Polish Labour Force Survey
AbstractUsing Polish Labour Force Survey data, we examine whether competition for labour has induced individual pay to depend on outside options, availability and quality of jobs. Exploiting the lack of inter-regional job and worker flows we estimate the elasticity of individual pay, amongst a rich set of individual characteristics, to be approximately -0.1 for local unemployment (job shortages) and + 0.1 for local job reallocation (restructuring). Variations in local labour market conditions explain approximately 50 per cent of the differences in expected individual earnings across regions, while differences in inherited human capital and occupation structures explain the rest.
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Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 364.
Date of creation: 01 Mar 2000
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- Walsh, Patrick Paul & Duffy, Fiona, 2001. "Individual Pay and Outside Options: Evidence from the Polish Labour Force Survey," IZA Discussion Papers 295, Institute for the Study of Labor (IZA).
- Patrick Walsh & Fiona Duffy, 2002. "Individual Pay and Outside Options: Evidence from the Polish Labour Force Survey," CERT Discussion Papers 0201, Centre for Economic Reform and Transformation, Heriot Watt University.
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
- L0 - Industrial Organization - - General
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
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